Walmart, the world's largest retailer, announced its third-quarter financial results on 20/11, reporting a significant 34% increase in profit to 6,1 billion USD. The company also saw a 4,5% rise in revenue at its US stores open for one year or more, signaling robust performance.

E-commerce emerged as a key growth driver, with global revenue surging by 27%. This strong performance led Walmart to raise its revenue and profit forecasts for the final quarter of the year, reflecting confidence in its ongoing strategies.

Customers shopping at a Walmart supermarket in Porter Ranch, Los Angeles, US. Photo: Reuters

The retailer's success comes as more consumers across the US prioritize affordability, contending with escalating prices fueled by inflation and import taxes. An uncertain job market, marked by unemployment ticking up to 4,4% despite 119.000 new jobs in September, further amplified consumer anxieties. Additionally, the 43-day US government shutdown, which impacted federal employees' incomes, prompted many to seek more affordable goods.

Walmart has strategically capitalized on this shifting consumer sentiment. The company leverages its immense scale to offer lower product prices, while simultaneously investing billions of USD in initiatives such as raising wages, renovating stores, and enhancing its e-commerce logistics infrastructure. These efforts have proven effective in a period when many American households are experiencing tighter budgets.

Doug McMillon, Walmart's chief executive officer, stated, "We are gaining market share, improving delivery speed, and managing inventory well. Overall, we are well-positioned for strong fourth-quarter results," underscoring the company's optimistic outlook.

Walmart maintains a significant competitive edge over rivals like Target, particularly in the grocery sector. Customers consistently frequent Walmart for food items, prompting the company to prioritize enhancing the quality of its fresh produce in recent years. This focus has also helped Walmart narrow the gap with Target in categories such as fashion and home goods.

As consumers tighten their belts, an increasing number are choosing Walmart over Target, a trend observed across middle and upper-middle income demographics. Walmart is also effectively attracting lower-income customers from discount retail chains, including Dollar General, further diversifying its customer base.

Walmart's business performance is frequently regarded as a key indicator of US consumer activity. Each week, 255 million people globally shop at its stores or place online orders. With 90% of the US population residing within 16 km of a Walmart store, the company is renowned for its aggressive cost control, a strategy that consistently enables it to offer competitive low prices.

Ha Thu (based on CNN, CNBC)